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When is a personal loan deductible?

Frequently asked questions about interest

A personal loan is tax-deductible in some cases. If you use the personal loan to renovate or improve your owner-occupied home, the loan is deductible. The personal loan is not tax deductible when it is used for consumer purposes such as furniture . The term of a personal loan is a maximum of 10 years. You can also use the personal loan to finance any residual debt . A personal loan for a residual debt is deductible for a period of 10 years.

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